In the previous session, most of the Tata Group stocks had closed down in the range of 1%-5% after board of Tata Sons on Monday replaced chairman Cyrus Mistry and brought back Ratan Tata as interim chairman for four months

Investors have lost more than Rs 25,000 crore in Tata Group companies during past two trading days. The total market capitalization (m-cap) of top 20 Tata Group listed companies, in terms of m-cap declined by Rs 26,426 crore to Rs 824,594 crore on Wednesday from Rs 851,020 crore on Monday.

"What could provide reassurance to the market is the fact that Mr. Ratan Tata is back in saddle as the interim Chairman and also the tight deadline of 4 months given to the Selection Committee by the Board of Tata Sons. Also, the Selection Committee comprises of venerable corporate leaders. After the initial wobble the stocks should stabilize in my view," says Ajay Bodke, CEO & Chief Portfolio Manager - PMS, Prabhudas Lilladher.

In a surprise move, Tata Sons said its board has removed Cyrus Pallonji Mistry as chairman of the conglomerate and named Ratan Tata as interim chairman for four months. The announcement came after the end of Monday’s trading session. Ratan N Tata shall be the interim Chairman of Tata Sons until the new chairman is appointed, Tata Group companies said in a regulatory filing.